Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The UK has formally agreed to become the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

It is a free trade agreement (FTA) between 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

It was signed in March 2018.

It succeeded the Trans-Pacific Partnership (TPP)after the United States withdrew from the TPP in 2017.

All 11 countries of CPTPP are members of the Asia-Pacific Economic Cooperation (APEC).

The rights and obligations under the CPTPP fall into two categories

1. Rules: for example, on how countries should make new food safety regulations or whether they can ban the transfer of data to other CPTPP member These are the same for all CPTPP parties (including any new members that may join).
2. Market access: how far each CPTPP member will cut its tariffs, open up its services markets, liberalise visa conditions for business travellers, and so on. Each member has its own schedules of commitments. In some cases, the commitments are offered to all other members, while in others, they are restricted to specific negotiating partners.

What is the Asia-Pacific Economic Cooperation (APEC)?

It is a forum of 21 Asia-Pacific economies established in 1989 & Founding
Members

Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States of America; Vietnam.

It seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.

The APEC Secretariat, headquartered in Singapore, provides advisory and logistic services as well as research and analysis.

Objectives of CPTPP

CPTPP covers virtually all sectors and aspects of trade in order to eliminate or reduce barriers

It establishes clear rules that help create a consistent, transparent and fair environment to do business in CPTPP markets

It also includes chapters on the protection of the environment and labour to ensure that CPTPP members do not derogate from their commitments in these areas to increase trade or investment

Straight forward rules of origin and origin procedures are set under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The custom procedures have been made simple effective, clear and predictable

Significance of CPTPP

In every province and territory, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will offer exporters a competitive advantage over exporters from other countries that do not have a free trade agreement with countries in the Asia-Pacific region. 

Once fully implemented, CPTPP will eliminate tariffs on almost all Canadian exports to CPTPP markets and create better export conditions, including:

1. Reduced barriers to trade
2. Increased access to government procurement
3. Consistent, transparent and predictable trade environment
4. CPTPP helps reduce unnecessary regulatory requirements

What is the CPTPP Commission?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Commission reviews the implementation of the agreement and considers ways to further advance trade and investment between CPTPP members. The Commission consists of ministers and senior officials from CPTPP members.

As of April 2021, three CPTPP Commission meetings have been held

First CPTPP Commission Meeting– The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) inaugural Commission meeting took place on January 19, 2019, in Tokyo, Japan. 

Second CPTPP Commission Meeting– The second meeting of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Commission took place from October 7 to 9, 2019 in Auckland, New Zealand. 

Third CPTPP Commission Meeting– The third meeting of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Commission was hosted virtually by Mexico on August 5, 2020. The topic of challenges arising from the COVID-19 pandemic and work towards post-COVID-19 economic recovery was also discussed in the commission meeting.